Sun Communities (SUI) AI Stock Analysis

• Market Cap: $15.90B
• Dividend Yield: 6.31%
• Average Volume (3M): 892.50K
• Price to Earnings (P/E): 197.0
• Beta (1Y): 0.36
• Revenue Growth: -6.88%
• EPS Growth: -45.29%
• Country: US
• Employees: 6,491
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Residential
• EPS (TTM): -0.34
• Shares Outstanding: 127,641,660
• 10 Day Avg. Volume: 894,501
• 30 Day Avg. Volume: 892,500
• PEG Ratio: -12.87
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.46
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 18.38
• Enterprise Value/Ebitda: 5.08
• 1Y Price Target: $135.75
• Price Target Upside: 8.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 70 Neutral
• Price Target: $136.00 ▲(9.15%Upside)

The overall score is influenced primarily by solid financial performance and positive earnings call insights, indicating stable operational strength despite leverage concerns. Technical analysis shows a positive trend, but high valuation metrics suggest overvaluation risks. Corporate events further support growth and financial flexibility, enhancing the stock’s appeal.

Positive Factors

Company Strategy

Sun Communities, Inc. has completed the sale of its Marina business to refocus on its core segments of manufactured housing and recreational vehicle communities.

Financial Performance

Sun Communities, Inc. increased its price objective to $132 to reflect an improved balance sheet following smart capital allocation decisions with the Safe Harbor sale proceeds.

Operational Performance

Sun Communities, Inc. reported a stronger performance in the manufactured housing sector with improved occupancy rates, reaching 99% across its MH and RV portfolios.

Negative Factors

Earnings Expectations

The analyst reiterates an Underperform rating based on valuation concerns, CEO uncertainty, and risks associated with the RV and UK markets.

Leadership Uncertainty

There is uncertainty due to the pending naming of a new CEO, which is a significant issue now that the Marina portfolio has been sold.

Market Performance

The transient RV business at Sun Communities, Inc. remains under pressure due to normalization after increased travel post-COVID and general macroeconomic uncertainty.

Sun Communities Business Overview & Revenue Model

Company Description

Sun Communities, Inc. is a REIT that, as of March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.

How the Company Makes Money

Sun Communities makes money primarily through rental income from its portfolio of manufactured housing and RV communities. The company leases land parcels to residents who own manufactured homes and charges rent for the land, which includes access to communal amenities and maintenance services. Additionally, Sun Communities generates revenue from RV site rentals, where travelers and vacationers pay for short-term stays at its RV resorts. The company may also earn income from selling and financing manufactured homes within its communities. Significant factors contributing to its earnings include a growing demand for affordable housing, strategic acquisitions of new properties, and the development of new communities to expand its portfolio.

Sun Communities Financial Statement Overview

Summary

Sun Communities presents a generally healthy financial position with strong operational and cash flow metrics. While revenue growth and profitability margins are favorable, high leverage is a concern, potentially impacting financial flexibility. The stability in cash flow generation supports operations, but the low net profit margin and return on equity are areas for improvement to enhance shareholder value.

Income Statement

Sun Communities shows steady revenue growth with a TTM revenue of $2.99 billion, although there has been a slight decline from the previous year. The gross profit margin remains strong at 47.7% in the TTM period. However, the net profit margin is relatively low at 2.56%, indicating challenges in converting revenue into net income. Both EBIT and EBITDA margins show solid profitability at 17.26% and 35.2%, respectively, providing a stable operational performance.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 1.06, suggesting significant leverage, which could pose financial risk. Return on equity is modest at 1.11%, indicating limited profit generation from shareholders' equity. However, the equity ratio stands at 41.93%, showing a reasonable proportion of equity financing compared to total assets, which adds some stability.

Cash Flow

Operating cash flow is robust at $862.4 million, contributing positively to a strong free cash flow. The operating cash flow to net income ratio stands at 11.24, highlighting a strong cash-generating ability relative to net income. The free cash flow to net income ratio is also robust, demonstrating effective cash management, although there has been minimal growth in free cash flow compared to previous periods.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	3.18B	2.93B	2.26B	1.39B
Gross Profit	1.50B	1.49B	1.42B	1.15B	774.22M
EBITDA	1.21B	771.60M	2.27B	1.68B	1.26B
Net Income	89.00M	-213.30M	242.00M	380.20M	131.61M
Balance Sheet
Total Assets	16.55B	16.94B	17.08B	13.49B	11.21B
Cash, Cash Equivalents and Short-Term Investments	47.40M	29.20M	200.10M	252.70M	202.07M
Total Debt	7.35B	7.78B	7.13B	5.60B	4.69B
Total Liabilities	9.36B	9.77B	9.20B	6.76B	5.58B
Stockholders Equity	7.08B	7.08B	7.81B	6.62B	5.53B
Cash Flow
Free Cash Flow	861.00M	790.50M	734.90M	753.60M	543.29M
Operating Cash Flow	861.00M	790.50M	734.90M	753.60M	543.29M
Investing Cash Flow	-267.40M	-919.50M	-3.06B	-2.34B	-2.49B
Financing Cash Flow	-571.60M	80.30M	2.35B	1.57B	2.00B

Sun Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 124.6 is below the 20-day moving average (MA) of 126.44, above the 50-day MA of 123.52, and above the 200-day MA of 121.71, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	70 Neutral	$15.90B	196.98	1.44%	6.31%	-6.88%	-45.29%
UDR	70 Neutral	$13.25B	111.86	3.40%	4.30%	2.35%	-73.89%
UMH	68 Neutral	$1.40B	149.69	3.45%	5.32%	8.01%	―
ESS	68 Neutral	$18.70B	26.84	12.09%	3.67%	7.61%	27.83%
ELS	68 Neutral	$12.37B	33.03	22.87%	3.33%	0.69%	5.67%
CPT	68 Neutral	$16.15B	104.98	2.47%	3.68%	0.56%	-73.40%
Sector *	63 Neutral	$6.98B	18.44	-1.93%	6.77%	4.67%	-25.44%

Sun Communities Corporate Events

Sun Communities Highlights Strategic Focus on MH and RV

On June 2, 2025, Sun Communities, Inc. released an investor presentation highlighting its strategic focus on MH and RV communities, following the sale of its Safe Harbor Marina properties. This move aims to simplify the company’s business strategy, improve its financial profile, and increase its exposure to annual income streams. The company anticipates that this transaction will enhance margins, improve overhead efficiency, and strengthen its balance sheet, positioning it as a ‘pure play’ MH and RV operator.

The most recent analyst rating on (SUI) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Holds Annual Shareholders Meeting

Sun Communities held its Annual Meeting of Shareholders on May 13, 2025, where shareholders voted on several key proposals. The election of nine directors was confirmed, with each director set to serve until the 2026 Annual Meeting. Additionally, shareholders approved the non-binding advisory vote on executive compensation, ratified the selection of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved an amendment to extend the term of the company’s 2015 Equity Incentive Plan to December 31, 2035.

The most recent analyst rating on (SUI) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Sun Communities Sells Safe Harbor Marinas to Blackstone

On April 30, 2025, Sun Communities, Inc. completed the initial closing of the sale of its Safe Harbor Marinas business to an affiliate of Blackstone Infrastructure for approximately $5.25 billion. This transaction aligns with Sun’s strategy to focus on its core MH and RV portfolio, enhancing its financial flexibility and leverage profile. The proceeds will be used to repay debt, fund future acquisitions, and return capital to shareholders through a special cash distribution and a stock repurchase program. The company also announced plans to redeem $950 million of outstanding unsecured senior notes and declared a special one-time cash distribution of $4.00 per share.